Harel Insurance Investments and Financial Services and Hachshara Insurance have joined the LRC group, owned by businessperson Yehuda Barashi, in the acquisition of an office campus in west Paris for NIS 1.3 million.
Harel and Hachshara will hold 49% and 10%, respectively, of the rights in the property. They will invest NIS 265 million and NIS 50 million in equity, respectively, mainly from the money of their members and policyholders.
The equity invested will amount to 40% of the two insurance companies' shares in the deal. The other 60% will come from a NIS 470 million loan to the companies by an international investment bank.
The deal was led by EVP and chief investments officer Sami Babekov and VP, head of credit, and head of global real estate investments Itzik Tawil for Harel, and by SVP and chief investment officer Yair Kaplan for Hachshara.
Long-term leases for technology companies
Sources close to the companies say that the property is located west of the La Defense business zone and overlooking the Seine River. The office campus, entitled Business Park, contains four buildings with 64,000 square meters of space, 1,430 parking places, restaurants, a fitness club, and lecture halls. The campus, which can accommodate up to 5,000 employees, is leased to technology companies under long-term leases, with a 98% occupancy rate.
Sources involved in the deal said, "Paris is one of the most important European capitals and a major business center for many local and international companies, including some of the world's leading industrial and commercial companies." They added that the offices market in Paris was "one of the biggest markets in Europe, with growing demand in recent years for topnotch properties."
LRC is a European real estate investment concern that manages €5 billion in assets. It is fully owned by Barashi, who operates mainly in the UK, Germany, Poland, the Netherlands, and Ireland. LRC will hold 41% of the acquired property.
Published by Globes, Israel business news - en.globes.co.il - on November 28, 2019
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